A Contribution Format Income Statement Allows a Manager to

question 162

Multiple Choice

A contribution format income statement allows a manager to

• A)assess the impact of product costs on net profit.
• B)assess the impact of sales volume on gross margin.
• C)assess the impact of sales volume on operating income.
• D)assess the impact of profit margin on product costs.

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Definitions:

Market-oriented Era

A period in business thought where the focus is on understanding and satisfying the needs and preferences of customers through research and market analysis.

Retailing-oriented Era

A period in business history marked by the dominant focus on retail activities, where selling direct to customers through various retail outlets was prioritized.

Production-oriented Era

A period in business where the focus was on production efficiency and product improvement, often at the expense of consumer needs and preferences.

Sales-oriented Era

A period in business history when companies prioritized selling their products and convincing consumers to buy, often regardless of actual customer need.